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Maldives orders GMR Group to leave within a week

Male, Nov 28: The Maldives government has issued notices to GMR terminating its contract to develop Male airport, where the company has already invested $250 million. GMR, a subsidiary of Bangalore-based GMR Infrastructure Ltd, has
India TV Business Desk November 28, 2012 12:05 IST
India TV Business Desk
Male, Nov 28: The Maldives government has issued notices to GMR terminating its contract to develop Male airport, where the company has already invested $250 million. GMR, a subsidiary of Bangalore-based GMR Infrastructure Ltd, has now been asked to leave the Indian Ocean island chain within seven days.



The cancellation of the $511 million deal signed in 2010, follows President Mohamed Waheed's failure to renegotiate terms, Reuters reported.

Reacting to the decision, GMR said: “In a unilateral and completely irrational move the Government of Maldives has today issued a notice to the GMR Male International Airport Ltd (GMIAL) intending to take over the possession and control of the Ibrahim Nassir International Airport (INIA) under the pretext that the agreement is void.”

The company said that this unlawful and premature notice on the pretext that the concession agreement is void is completely devoid of any locus standi and is therefore being challenged by the company before the competent forums.

“We would also like to inform all that this action by the GoM is in complete disregard of and has been done during the pendency of arbitration proceedings in the designated tribunal in Singapore,” GMR said.

The company said it disputes the contention that the concession agreement is void, and added that it has taken all measures to continue operations at the INIA.

“We are therefore taking all measures to ensure the safety of our employees and safeguard our assets. We are confident that the stand of the company will be vindicated in every way,” the statement said.

The $500-million project was hanging in balance ever since the regime change in Maldives earlier this year. GMR had had won the contract during the regime of former President Mohamed Nasheed.

(With Agency inputs)